Have the Wealthy Changed their Values?

By

Robert Frank

Jan 11, 2010 3:04 pm ET

A new survey from PNC aims to show how the wealthy have changed their values because of the recession.

Associated Press

Rolls Royce

According to the survey, of more than 1,000 people with net worths of at least $500,000 in investible assets, 88 percent agreed with the statement that it is “more important than ever to live within my means.”

Fully two thirds agreed with the statement that “I’ve developed greater appreciation for the non-material wealth in my life.” Half said that they “feel more centered because the recession has given me opportunity to re-evaluate my priorities.”

In other words, the wealthy have been brought down to reality like the rest of the country. They’re humbled, repentent and newly frugal.

Or not. The survey also found that only 18% said their salary or compensation had been reduced due to the recession. That’s remarkable in an age of 10% unemployment.

Less than a third of those worth $1 million or more said the recession has an effect on their lifestyle. A minority — only 42% — said they have reduced expenditures because “it doesn’t feel right to spend in these economic times.”

Perhaps the survey is entirely consistent, with the wealthy feeling relatively little financial impact but a big psychological impact from the recession. The rich may have the money to spend, but they’re still just not in the mood.

Yet I also wonder whether the findings highlight a bigger trouble with surveying the wealthy today. On the one hand, they say they have devalued material wealth. On the other hand, very few have actually changed their material lifestyles.

Perhaps these surveys are more reflective of how the wealthy would like to be perceived – not how the way they actually live.

Do you think the wealthy have actually changed their values about spending and money?

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.